Compensation costs for private industry workers in the Phoenix-Mesa, Arizona Combined Statistical Area (CSA) rose by 3.1 percent over the year ending September 2025, according to a report released by the U.S. Bureau of Labor Statistics. Chris Rosenlund, Regional Commissioner, noted that this increase follows a 3.3 percent rise recorded in the previous year.
Nationally, compensation costs increased by 3.5 percent during the same period.
Within Phoenix, wages and salaries—the largest part of compensation—grew by 2.6 percent over the twelve months leading up to September 2025. In comparison, wages and salaries at the national level increased by 3.6 percent.
Other metropolitan areas in the western United States reported higher annual gains in compensation costs for September 2025: Los Angeles-Long Beach, San Jose-San Francisco-Oakland, and Seattle-Tacoma saw increases ranging from 4.7 percent to 3.4 percent. Wages and salaries in these regions grew between 4.3 percent and 3.4 percent.
The Bureau of Labor Statistics explained that these local statistics are part of the Employment Cost Index (ECI), which tracks quarterly changes in employer compensation costs independent of shifts among occupations or industries.
Further details on national ECI data—by industry, occupational group, union status, as well as information for civilian, private sector, and government employees—are available on the Employment Cost Index website. The summary of national ECI findings can also be found online. For more information on data covering other regions or localities in the West, visit the Western Information Office regional homepage.
The Phoenix-Mesa CSA is comprised of Gila, Maricopa, and Pinal Counties.
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